iSHARES® iBONDS® ETFs
Build better bond ladders
What are iBonds ETFs?
iBonds exchange-traded funds (“ETFs”) are an innovative suite of bond funds that hold a diversified portfolio of bonds with similar maturity dates. Each ETF provides regular interest payments and distributes a final payout in its stated maturity year, similar to traditional bond laddering strategies. However, the funds’ unique structure is designed to help investors easily build bond ladders with only a handful of funds.
What can iBonds ETFs do for you?
The unique features of iShares iBonds ETFs can help you more easily build bond ladders, pick points on the yield curve, or even match expected cash flow needs in the future.
- Build bond ladders: iBonds ETFs make it is easy to create scalable bond ladders with only a few ETFs, rather than trading numerous bonds.
- Pick points on the yield curve: iBonds ETFs offer diversified exposure to bonds that mature in the calendar year of the fund's name, allowing you to target specific points on the yield curve.
- Match expected cash flows: iBonds ETFs offer a defined maturity date that can help you have cash on hand when an expense comes due.
See how iBonds ETFs compare
For illustrative purposes only.
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iShares iBonds ETF line up
iBonds ETF strategies span several asset classes, including: U.S. Treasuries, municipals, investment grade and high yield bonds. Whether you are looking for a conservative or aggressive strategy, iBonds ETFs has a solution to help you build a customized portfolio for your specific needs.
| Year | U.S. Treasuries | Municipals | Investment Grade Corporate | High Yield & Income Corporate |
|---|---|---|---|---|
| 2023 | IBTD | IBML | IBDO | IBHC |
| 2024 | IBTE | IBMM | IBDP | IBHD |
| 2025 | IBTF | IBMN | IBDQ | IBHE |
| 2026 | IBTG | IBMO | IBDR | IBHF |
| 2027 | IBTH | IBMP | IBDS | IBHG |
| 2028 | IBTI | IBMQ | IBDT | IBHH |
| 2029 | IBTJ | IBDU | IBHI | |
| 2030 | IBTK | IBDV | ||
| 2031 | IBTL | IBDW | ||
| 2032 | IBTM | IBDX |
How do iBonds ETFs work?
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When you are ready to purchase an iBonds ETF, we have tools to help you understand the estimated net acquisition yield of the fund. The estimated net acquisition yield provides a yield estimate, net of fees and market price impact, if the fund is held to maturity.
On each iBonds ETFs product page, the Estimated Net Acquisition Yield Calculator can provide a yield estimate if you enter a projected market price. This calculator is also built into the iBonds ETF Ladder Tool, which allows you to view multiple funds at once.
Preview the Estimated Yield of an iBonds ETF
For illustrative purposes only.
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iBonds ETFs are designed to provide a yield-to-maturity ("YTM") profile comparable to that of the underlying bond portfolio. The funds seek to preserve an investor’s anticipated yield-to-maturity through a combination of monthly distributions and a final end-date distribution.1
Anticipated investor YTM driven by monthly income distributions and end-date distributions
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iBonds ETFs terminate in March or December of the year in the fund’s name.
In the final months when the bonds in the portfolio mature, the fund's holdings transition to cash and cash equivalents.
After all the bonds in the portfolio mature, the ETF is closed and shareholders receive a final distribution equivalent to the fund NAV, after liabilities. This is a similar experience to the principal repayment of an individual bond at maturity.
As the fund’s holdings mature, the ETF will transition to cash equivalents
Since launching in 2010, one U.S. Treasury, 10 municipal, 12 investment grade corporate, and one high yield and income corporate iBonds ETFs have successfully matured and liquidated. All 24 iBonds ETFs provided a total return experience that closely approximated holding a portfolio of individual bonds.
Learn more with this iBonds ETF Maturity Case Study.